Download Foundations of Economics I: Introduction and Microeconomics

Prof. Dr. Rudi Kurz
Office hours: Wednesday 13:45-15:15
Office: W4.1.02
Email: [email protected]
Foundations of Economics I:
Introduction and Microeconomics
(ECO1041)
Syllabus
Winter Semester 2016/17
Time (room)
ECTS Credits
Start
Level
Prerequisite
Tuesday 17:15-18:45 (W3.2.01), Wednesday 17:15-18:45 (W2.3.15)
6 (workload: 60 contact hours + 120 hours of self-study)
October 5
Basic
English language skills (min. B2)
Schedule (preliminary Sept 2016)
Oct 5, 11, 12
Oct 25, 26
Nov 2, 15
Nov 16, 22, 23
Nov 29, 30
Basic concepts and ideas of (micro-)economic thinking: scarcity,
incentives, thinking at the margin, opportunity costs
Mankiw / Taylor 2-66 (1st ed.: 3-59)
Consumer choice: indifference curves; budget restriction; optimal
choice, demand curve, elasticity, consumer surplus
Mankiw / Taylor 438-465 (427-451)
Production and supply: how companies make decisions (profit
maximization), supply curve, producer surplus
Mankiw / Taylor 264-307 (255-294)
Perfect competition, welfare analysis, price controls, taxes
Mankiw / Taylor 68-173 (63-163)
Imperfect competition: monopoly, monopolistic competition,
oligopoly and game theory
Mankiw / Taylor 308-379 (295-369)
Competition policy
Mankiw / Taylor 308-379 (295-369)
Market failure: public goods, external effects, environmental
Dec 7, 13
policies, Coase Theorem
Mankiw / Taylor 198-236 (189-251)
Advanced Microeconomics: imperfect information
Dec 14, 20
Mankiw / Taylor 466-484
Advanced Microeconomics: Behavioral Economics
Dec 20, 21
Mankiw / Taylor 466-484
Social market economy: poverty and redistribution, social
Jan 10, 11, 17 insurance system
Mankiw / Taylor 418-436 (409-424)
Dec 6
Jan 18, 24, 25 Q&A, exercises, feedback
Jan 30
Written Exam
2
Learning objectives
 Students understand the importance of government regulations which are the
framework for business activities.
 They can handle supply and demand curves and they are able to apply this
instrument to economic problems.
 Students are capable of evaluating the consequences of government interventions
for efficient market solutions.
 They know the functions of competition, the limits of free competition and they
understand the components of competition policy.
Main course topics
 Basic economic concepts and methodological foundations
 Economic systems and “Social Market Economy”
 Consumers decision making and the demand curve
 Production and cost functions, profit maximization and the supply curve
 Perfect and imperfect competition, monopoly and monopolistic markets, oligopolies
and game theory
 Government intervention in competitive markets (price ceilings, taxes etc.)
 Competition policy
 Externalities and market failure
Teaching and learning approach
 Students and their learning progress are at the core of the mission of Pforzheim
Business School. Therefore, this is important to me and I will support it in class as
well as by guidance for your individual reading and exercising. In addition we can
discuss problems via e-mail or arrange an appointment. The written exam will
provide a final feedback on the success of your learning efforts.
 The course follows primarily a lecture-style approach but preparation based upon
suggested readings and continuing active class participation throughout the term is
expected. For each class the student has to come prepared by accomplishing the
reading assignment. The teacher does not cover all the subjects but focuses on the
main subjects referring to the reading assignment. A lot of the time in class will be
used to apply the knowledge and the methods.
 If you miss classes you miss an important learning opportunity. Classes are built on
the reading assignments. We discuss the important concepts, models, principles and
apply them to real world situations.
Grading: Based 100% on the written exam.
Contributions to program goals
Goals
Expert knowledge
Use of information
technology
Critical thinking and
analytical competence
Ethical awareness
Communication skills
Capacity for teamwork
Contributions
- Decision-making in firms
- Efficiency of competitive market solutions
- Competition policy
- Market failure and government regulation
Assessment
Application of microeconomic methods to
analyze real world problems and to assess
government policy
Market failure, role of government in solving
environmental and social problems, role and
responsibility of firms
class
discussion,
written exam
class
discussion,
written exam
class
discussion
written exam
3
Course Materials
Basic Literature
Mankiw, N. Gregory / Taylor, Mark P. (2014): Economics, 3rd ed., Andover (SouthWestern, Cengage Learning)
Additional Literature
Baumol, William J. / Blinder, Alan S. (2012): Economics. Principles and Policy, 12th ed.,
Andover (Cengage Learning)
Baye, Michael R. / Prince, Jeffrey T. (2012): Managerial Economics and Business
Strategy, London etc. (McGraw-Hill)
Beck, Hanno (2014): Behavioral Economics - eine Einführung, Wiesbaden (Gabler)
Mankiw, N. Gregory / Hakes, David R. (2012): Study Guide Principles of Economics, 6th
ed., Mason, OH (South-Western, Cengage Learning)
Pindyck, Robert S. / Rubinfeld, Daniel L. (2015): Microeconomics, 8th ed., Boston
(Pearson) wirt 3.44 2007 1320
Roth, Alvin E. (2015): Who Gets What – And Why. The New Economics of Matchmaking
and Market Design, Boston / New York (Houghton Mifflin Harcourt Publishing)
Samuelson, Paul A. / Nordhaus, William D. (2010): Economics, 19th ed., Boston etc.
(McGraw-Hill)
Varian, Hal R. (2010): Intermediate Microeconomics: A Modern Approach, 8th ed., New
York, NY (Norton)
Additional Materials
•
http://cws.cengage.co.uk/mankiw_taylor2/students/stu_title.htm
•
Articles on current economic policy
www.economist.com; Financial Times; …)
issues
(e.g.
from
The
Economist
Beyond ECO1011
Smith, Adam (1776): An Inquiry into the Nature and Causes of the Wealth of Nations, …
Schumpeter, Joseph A. (1942): Capitalism, Socialism, and Democracy, …